TaxTMI 
TaxTMI 
Cenvat credit on Capital Goods
22 Dec 2010 
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Cenvat credit on capital goods can be availed under exemption and utilised when excise liability arises.
Cenvat credit on capital goods can be availed during the exemption period while utilisation is deferred until excise liability arises; partial credit may be availed in the initial year under exemption and the balance availed in subsequent financial years for payment of duty when the unit crosses the turnover threshold and goods become excisable. (AI Summary)
Cenvat credit on capital goods can be availed during the exemption period while utilisation is deferred until excise liability arises; partial credit may be availed in the initial year under exemption and the balance availed in subsequent financial years for payment of duty when the unit crosses the turnover threshold and goods become excisable. (AI Summary)
A Company had availed 50% Cenvat Credit on Capital Goods on the first year of procurement when the unit was availing exemption under Notn.8/2003 and has not paid duty during the entire period(period refered is 2006-07). Is it allowed to avail the 50% credit in the first year ie. under exemption or 100 % credit in subsequent years ?